Foreigners may have to wait a few more weeks before accessing China's large array of private-sector companies listed on the Shenzhen Stock Exchange, as concerns mount over capital outflows on the back of a weaker yuan. an investment strategist told CNBC.
While no specific dates were set for the launch of the so-called Shenzhen-Hong Kong Stock Connect, some investors were betting that Monday would mark the official open of access to the exchange notable for potential access to tech and other new economy companies in China.
"Right now, I think people are definitely worried about the capital flight," Kevin Leung, director of global investment strategy at Haitong International Securities, told CNBC's "Squawk Box" on Monday. "That's one of the reasons why the Stock Connect didn't really happen today."
Onshore yuan has fallen nearly 2 percent against the dollar since the Nov. 8 U.S. election, as the victory by president-elect Donald Trump spurred a broad rally for the greenback against most currencies on expectations of fiscal stimulus and tax cuts.
Though a weaker yuan theoretically helps China by making exports cheaper, the benefits were overshadowed by concerns over capital outflows. A weaker yuan also reduces purchasing power of consumers in the global market by making goods and services in other currencies more expensive.
Jackson Wong, associate director at Huarong International Securities, told CNBC'S "Street Signs," that there were probable concerns that opening up another channel that allowed Chinese investors to buy foreign assets could see them "go all out," and further exacerbate capital outflows and push the yuan lower.
On Friday, the chief executive of market operator Hong Kong Exchanges and Clearing, Charles Li, told reporters while both sides were ready for the launch, they preferred it to be done on a Monday and at a time when there were no market-moving events on the cards, such as the upcoming MSCI Equity Indexes review on Nov. 30.
Chinese media speculated the so-called Stock Connect could launch either on Dec. 5 or Dec. 12, but the Hong Kong Exchanges and Clearing told CNBC to wait for an to wait for an official announcement from Hong Kong and mainland Chinese regulators.
Analysts told CNBC Dec. 12 was the likely date as further delays would push the launch into the Christmas holiday period and add to existing investor concerns. "A lot of investors are already disappointed because they are worried if there's something wrong with this scheme or anything that's hindering this (from being) rolled out," said Wong.